CFPB’s Action on “No-Action Letter” Speaks Louder Than its Words
The CFPB asserts that it does not want to stifle innovation, but its latest issuance on "no-action letters" speaks louder than words. Even if a bank manages to successfully jump through enough hoops to get a "no-action letter" from the CFPB on a proposed product, the CFPB would offer no immunity against private litigation or enforcement actions by other agencies, the letter may not be covered by UDAAP, the letter will receive no deference by the courts, the letter can be revoked at any time, and the letter will be publicly published for all competitors to see. "The Bureau believes that there may be significant opportunities to facilitate innovation and access, and otherwise enhance consumer benefits, through the Policy." Yep, sign us up! (2/22/16]
